Pemex finds gas, condensates in deep water well

AnthonyHarrup

MEXICO CITY -(MarketWatch)- Mexican state oil monopoly Petroleos Mexicanos said Wednesday it discovered gas and condensates in a deep-water well in the Gulf of Mexico, with initial production tests giving a preliminary estimate of reserves in the deposit between 400 and 600 billion cubic feet.

The company, known as Pemex, said the Piklis 1 well, located in the southern Gulf of Mexico and its deepest to date, was drilled to a depth of 5.4 kilometers, including 1.9 kilometers of water.

The well was drilled using a semi-submergible platform under lease for five years from Mexican company Gremsa, Pemex said.

Pemex is exploring deep waters of the Gulf of Mexico as part of its long-term strategy to maintain its crude oil production, which has fallen from close to 3.4 million barrels a day in 2004 to just under 2.6 million barrels a day at present.

Pemex's natural gas production has risen since 2004, however. The company produced an average of just over 7 billion cubic feet a day in 2009 and 2010, and 6.8 billion cubic feet a day in the first four months of this year.

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